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HQ 957442




March 10, 1995

CLA-2 CO:R:C:M 957442 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 8519.99.00, 8543.80.98

Mr. Sal Della Ventura
Sony Electronics Inc.
123 Tice Boulevard
Woodcliff Lake, NJ 07675

RE: Dynamic Digital Sound Player System; digital sound track reader; digital sound decoder/converter; other sound reproducing apparatus; electrical machines and apparatus not elsewhere specified; functional unit; legal note 4 to section XVI; EN 85.19; HQ 083967

Dear Mr. Ventura:

This is in response to your letter dated November 16, 1994, to the Area Director of Customs in New York, concerning the tariff classification of the Sony Dynamic Digital Sound (SDDS) Player System under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was forwarded to this office for a response.

FACTS:

The merchandise, labeled as the Sony DFP-2000 Dynamic Digital Sound (SDDS) Player System, is comprised of a digital filter playback reader and digital filter playback decoder which are used in motion picture theaters. The system has the capability of reading digital audio data recorded on 35mm film in DDS format and feed the digital sound to the theaters sound system through the decoder.

The reader, model DFP-R2000, is a digital sound track reader, which is mounted on an existing movie projector. It reads 8 channels of digital audio signals on the sounds of the 35mm film. The digital audio sound tracks are illuminated by LED arrays (solid state illumination) and the data is captured by two CCD couplers (cameras).

The decoder, model DFP-D2000, is a digital sound decoder which converts audio signals received from the reader, via a cable, into analog signals. It then sends the signals to the theater sound system into their respective amplifiers or crossovers.

ISSUE:

Is the Sony DFP-2000 Dynamic Digital Sound (SDDS) Player System classifiable as other sound reproducing apparatus or as other electrical machines and apparatus not elsewhere specified or included under the HTSUS?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

The following subheadings are under consideration:

8519.99.00: Turntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device:
[o]ther sound reproducing apparatus: [o]ther. . . .

Goods classifiable under this provision have a column one, general rate of duty of 3.1 percent ad valorem.

8543.80.98: Electrical machines and apparatus, having individual functions, not specified or included else-where in this chapter. . . : [o]ther machines and apparatus: [o]ther:
[o]ther: [o]ther. . . .

Goods classifiable under this provision have a column one, general rate of duty of 3.6 percent ad valorem.

You indicate that when the entire SDDS Player System is imported, it should be classified under GRI 3(b) as "goods put up in sets for retail sale". However, we note that Legal Note 4 to section XVI, HTSUS, provides that:

Where a machine (including a combination of machines) consist of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.

According to the information provided, the SDDS Player System consists of a digital sound reader which reads the sound track of a 35mm film and sends the digital information through a cable to the decoder which converts the digital signal into analog and sends the signals to the theater sound system into their respective amplifiers or crossovers. We find that the SDDS Player System meets the definition of a functional unit as set forth in Legal Note 4, to section XVI, HTSUS, because it consists of two components interconnected by a cable which contribute together to the clearly defined function of producing sound for a movie theater sound system.

Sound reproducing apparatus are provided for under heading 8519, HTSUS. The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the Customs Cooperation Council's official interpretation of the HTSUS. While not legally binding, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 FR 35127, 35128 (August 23, 1989). EN 85.19, pages 1366-1367, states as follows:

This heading covers all sound reproducing apparatus, whatever the purpose for which it is intended (for example, educational purposes, conferences, radio broadcasting, cinema, dictating mail).

The main types of sound reproducing apparatus classified here use sound-records made by the recorders mentioned in Explanatory Note 85.20. They include:

(4) Cinematographic sound reproducers operating photoelectrically, whether or not combined with a magnetic process.

We find that the SDDS Player System, when imported as a functional unit, is provided for under heading 8519, HTSUS, because it reproduces sound for a movie theater sound system. It is classifiable under subheading 8519.99.00, HTSUS, as other sound reproducing apparatus.

In your letter, you also requested the classification of the component parts when entered separately. In HQ 083967, dated June 21, 1989, Customs determined that the classification of an electronic device which converted digital data from sound reproducing apparatus (i.e., digital audio tape players and compact disk players, etc.) to an analog signal was under heading 8543, HTSUS, as other electrical machines and apparatus, having individual functions, not specified or included elsewhere in chapter 85, HTSUS, because no specific provision covers machines which function to convert digital data to an analog signal.

We find that the DFP-D2000 decoder, which converts digital signals into analog signals, is similar to the electronic device described in HQ 083967. Therefore, the DFP-D2000 decoder is classifiable under subheading 8543.80.98, HTSUS, as other electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter.

The DFP-R2000, which is a digital sound track reader, reads 8 channels of digital audio signals on the sounds of the 35mm film. Because there is no provision for digital audio signal film readers, we find that the DFP-R2000 player is classifiable under subheading 8543.80.98, HTSUS, as other electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter.

HOLDING:

The SDDS Player System is classifiable under subheading 8519.99.00, HTSUS, which provides for: "[t]urntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device: [o]ther sound reproducing apparatus: [o]ther. . . ." The column one, general rate of duty is 3.1 percent ad valorem.

When imported separately, the DFP-D2000 decoder and the DFP-R2000 player are classifiable under subheading 8543.80.98, HTSUS, which provides for: "[e]lectrical machines and apparatus, having individual functions, not specified or included else-where in this chapter. . . : [o]ther machines and apparatus: [o]ther: [o]ther: [o]ther. . . . " The column one, general rate of duty is 3.6 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

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